Group relief : Capital allowance

During the expansion phase of a business. Clients invest a lot of money which is eligible for capital allowance but the company under which investment is made may not have sufficient profits to absorb it.

If a client has other profitable companies within the group. Current year’s capital allowance can be transferred to the profitable companies to reduce the tax over all group tax bill.
more information:

http://www.accaglobal.com/uk/en/technical-activities/technical-resources-search/2011/september/company-losses.html